US Treasuries dropped and global stocks retreated on Monday as President Donald Trump’s Greenland-related tariff threats reignited trade tensions, testing market confidence after a recent rally driven by artificial intelligence investments.
Trading resumed following a US holiday, with Treasuries, especially longer maturities, leading losses. The 30-year Treasury yield rose four basis points to 4.88%, while a gauge of the dollar fell to a two-week low. Equity-index futures suggested declines for US shares when Wall Street reopens, and European stocks faced further losses after their worst session since mid-November. Asian markets also slipped the most in over a week.
Investors flocked to haven assets, driving gold and silver to record highs. The surge in precious metals comes amid concern over Trump’s threat to impose tariffs on eight countries opposing his bid to gain control of Greenland, as well as pushback from European allies.
The renewed market volatility is compounded by ongoing worries about the Federal Reserve’s independence and Trump’s domestic policies, including proposals to cap credit-card interest rates.
